Tesla’s stock has plummeted since Donald Trump took office, with a 20% decline to $336.51, despite rising 92% in the months leading up to his inauguration. The electric vehicle giant is struggling due to decreased sales performance, particularly overseas.
The recent drop in Tesla’s sales has been attributed to several factors, including lower-than-expected deliveries and tariffs imposed by the new administration. Germany reported a 60% decline in Tesla sales in January year-on-year, while China saw an 11% decrease over the same period.
Tesla CEO Elon Musk is also facing criticism for his involvement in politics, with many viewing it as a distraction from the company’s car-making operations. This has led to concerns about potential headwinds in the European market, where Tesla sales have slumped by up to 75%.
Analysts warn that if Beijing retaliates against Tesla with trade policies, it could create geopolitical headwinds for the company within its key China market. Despite this, Tesla remains a dominant player in the electric vehicle sector and has shown resilience in the face of challenges.
The stock’s current downturn raises questions about how long it will last. With ongoing competition from rivals like BYD and potential tariffs on Chinese imports, Tesla must navigate these headwinds to maintain its market position.
Source: https://www.newsweek.com/tesla-stock-elon-musk-trump-tariffs-2030466